9/1/23 Inflation Ticked Up–Time to Look Left


The latest inflation numbers dropped yesterday pre-market. 

The Fed-preferred gauge, the PCE index, showed spending ticked upward from June to July.

Chart from Trading Economics

But the rise is insignificant when you look at the 12-month chart.

Inflation is still on the cooling path. Yesterday’s data didn’t suggest otherwise.

  • Month-over-month personal income rose +0.2%
  • Disposable income fell -0.2%

Markets took the news in stride.

The indexes opened higher but faded into the close. Markets closed Thursday at the session lows and mostly red…

  • Dow Jones -0.5%
  • Nasdaq +0.1% 
  • S&P 500 -0.2%
  • Russell 2000 -0.2%

Sector Round Up

Risk-on stocks led as only 4 of the 11 sectors closed Thursday’s session with gains.

At the top…

  • Technology (XLK) +0.5%
  • Consumer Discretionary (XLY) +0.3%
  • Communications (XLC) +0.1%

At the bottom…

  • Real Estate (XLRE) -0.7%
  • Utilities (XLU) -1.0%
  • Healthcare (XLV) -1.2%


The Russell 2000, which represents risk-on stocks, is a critical turning point…

RUT Daily Candle – Chart by thinkorswim

The long-term resistance level, marked on the chart above, should slow buyers down.

We’re expecting a drawdown in the coming month. Markets may have reached a turning point.

Your latest readout…


Today is the first day of September and the last day of trading before the 3-day weekend.

The markets will digest the latest jobs data, which drops at 8:30 this morning.


*Low Float
^Open Position

*HOLO support at $8
*TSAT support at $18
GRPN support at $12
CAL support at $28
PFIE support at $2.60
REKR support at $3.50, resistance at $4
ESTE support at $20
MAPS support at $1.40 / $1.50
TIGR support at $4.50

Secondary watchlist—float 100+ million

TSHA support at $2.75
ICCT on watch

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